spinning reserve

Surviving and Thriving in the RTO Revolution

How to design tariffs to improve reliability and attract merchant generation.

1 A representation of a generic interconnection, with thermal, hydro, and nuclear generation sharing a grid with a winter peaking load.

2 , 93 FERC 61,294, Dec. 15, 2000.

3 For a survey of methods, see J.W. Marangon Lima "Allocation of Transmission Fixed Charges: An Overview,", Vol. 11, No. 3, 1996.

News Digest

 

News Digest


 

FERC's Merger Policy: Still Founded on Market Power

But the fly in the ointment is computer modeling, where no one yet agrees on how to mirror the real world.


 

But the fly in the ointment is computer modeling, where no one yet agrees on how to mirror the real world.

A promise made is a promise kept, even in the halls of government.

Frontlines

Frontlines

Scare Tactics

The Wall Street Journal is goading Congress to act. And it might just work, if the warnings come to pass.

On May 8 ISO New England predicted it would have enough electricity to meet peak demand this summer. But how much demand are you gonna see at $6,000 per megawatt-hour, which was the ISO's prevailing price that day from 2 p.m. to 6 p.m?

A Subtle but Clear Preference for ISOs

Do not mistake the FERC's professed neutrality on what works best for regional transmission organizations.

In its final rule on regional transmission organizations, known as Order 2000,[Fn.1] the Federal Energy Regulatory Commission said it would not dictate to the electric utility industry whether and how to form RTOs. Don't be misled. The FERC claims to be agnostic,[Fn.2] but it still has a vision. And that vision leads inexorably to one conclusion. The preferred form for an RTO is the independent system operator, or ISO.